Haha lol
You guys kills his dreams goals
You guys kills his dreams goals
WTI Broker with 400 or 500 leverage? 13 replies
Reliable Broker with nano lot, micro lot broker, leverage 1:400, 1:500 35 replies
Want To Use A Broker In US With 500:1 Leverage 8 replies
400:1 500:1 leverage 24 replies
Inquiry of 400:1 leverage method 11 replies
DislikedYou cannot have proper money management with 500:1, as each pip would amount to aprox 5% of your account. Due to inherent uncertainty of forex market, such risk is simply unacceptable. I don't know how you can even consider such madness.
Once again, only brokers interested in taking your money will allow this.Ignored
Dislikedby money management I mean only risking what you don't care about losing. Say a 200 dollar account on high leverage running besides say your oanda account. If you see a crazy trend, and are making profit on your real account. Then drop 5 positions at it and close at +5 on each. I mean, hell, why not risk 200 on a gamble? Thats like 1 hand on a 20/40 holdem table.Ignored
DislikedBecause on casino you cannot control your risk.
On Forex you can control it.
You can risk your maximum loss of -200 for a win of 3800.
In casino it is 50/50
Thats a big different dude!Ignored
DislikedPipBoy, where did you read that NorthFinance is good? I've been considering them but some are against it.
I think that BurgerKing is honest in his comments about NorthFinance, even though he doesn't trade with them anymore. But if you go to their website, it's true that they don't have an address. Just P.O. Box. But that is not really a problem since there are still brokers registered with NFA and CFTC but are scammers too or don't know how to run the business so they fold up.Ignored
DislikedPipBoy, don't be an id*ot. No decent brokers offer anything above 100:1. As a matter of fact, check out currenex providers. Most of them have 50:1. Because forex is damn unpredictable only a fool would use 1:500, a 25 pip spike would wipe out your account. And those can happen for no apparent reason from time to time. Good brokers don't want to go bust, hence they don't allow extreme leverage.
Best regards,
VladIgnored
Dislikedonly a fool would use 1:500, a 25 pip spike would wipe out your account. And those can happen for no apparent reason from time to time. Good brokers don't want to go bust, hence they don't allow extreme leverage.
Best regards,
VladIgnored
Dislikedbravester,
20k from ForexGen hit my bank account today.
I had to wait about 10 days for it, and I was in constant communication
with their support staff who were polite and helpful.
They certainly did not scam me.
CoderIgnored
DislikedWell said bro.
I like your trading style. Very good indeed. In my opinium 1:400 or 1:10 or 1:1000 is the same. If you have a STRONG Risk Management you can use that leverage easily. I dont understand why wannabe pro traders laughing at you when you asked them for an advise. Especially Mr. Trend, that guy is a joke.
I have also tried to look for a broker with 1:400 1,5 years ago.
Well, Pipboy i must dissapoint you, there are NO brokers that offer you 1:400. Why? Because brokers that offers 1:200 or higher are bucket shop! Or they are a big fraud like Northern Finance. They will stop Hunt You. Trust me. Metatraders brokers are a big joke too.
You should look for an ECN broker that offer high leverage. If you dont know what an ECN is do a Google search. ECN model are the best way to trade in FOREX.
I am with MBT/EFX Group at this moment. They are a great broker and offer 1:100 to you. That is the highest leverage soo far for an ECN Broker.
Interactieve Brokers are much BIGGER but they offer 1:50 which are too low for me so that is why I choose MBT/EFX group.
Ignored
QuoteDisliked
i know good brokers like fxsol and gft , they provide 400:1 leverage
can u say , well they r scam?
remeber this they r registered in NFA and CFTC
the sad thing here their platform are not MT4
i know a guy trading in forex said the real banks don't give more than 10:1 leverage!
i don't know if this is true or false
Dislikedyea, Nf is great broker, but they exteremly terrible in news time, and all almost all orders is manuall, but if you trade normall market i think nf will be best for you as 1.500 leverage .Ignored
DislikedCoder,
Great !!! Congratulations!!! But Just be aware, they have scammed and robbed several people. If it hasn't happened to you today does not mean it can never happen to you. Moreover, they have no physical address, no support phone number , no regulation , in short if they were to fold up and run away with your money, you'd be screwed big time. I am telling you, things used to be much better about 6 months ago. Withdrawals used to be processed same day, customer service used to call back if you had a problem. None of that happens now. If you knew what i know now, you would pull out your money. Entirely upto you, take care , good luck and stay alert.Ignored
DislikedI like this one
It is like if Roger Federer will ask advice for choosing a racket to play tennis because he is a pro in playing tennis not in choosing a racket !
I saw that you want to open an account with NF.
So I believe you, you are not a pro in chosing a brokerIgnored
DislikedAlpari UK offer leverage up to 1:500 for accounts below 5,000.
I'm impressed with their email support (sent 3 emails to them today and got replies within about 3 minutes) They are also regulated by the FSA.
I can't comment on execution or anything else though as I only had my live account approved with them this last week and not sending funds till monday.
Ignored
Dislikedthis broker have 1.400 and 1.500 leverage with metatrader4
http://fxclearing.ca/eng/
i know nothing about them, no idea , just wanted to share with you if you're looking for broker like thisIgnored
Dislikedhttp://www.cmsfx.com/ offers pretty high leverage.
Now, I want to say something for those who are bashing Pipboy for this question. 400:1 leverage is only bad if you use it incorrectly. I could see someone wanting to take some high risks at the chance of a huge return. There is nothing wrong with that. I spend 100's of dollars at the casino each month with less of a chance of winning than you have betting a few hundred at forex. In fact, I should probably stop playing at the casino and just bet it on a 400:1 forex account. Despite whatever the leverage is, you can still use money management, and the odds sure beat the casino.Ignored
Dislikedhttp://www.forexfactory.com/showthread.php?t=10780
Posted Nov 30, 2006
by aparsai
I try to wrap up what everyone else said with a few examples:
In these examples suppose your base currency is USD and and your current balance is $10,000. Also you get a margin call if your free margin drops below $500.
Higher Leverage and Money Mangement
Higer leverage without money management is a real killer. If you decide to trade GBPUSD long and the current price is 1.9000:
(A) With 100:1 you may purchase 4 standard lots and consume $7600 of your margin (4*100000*1.9/100=7600).
(B) With 400:1 you can purchase 16 lots and consume the same amount of your margin (16*100000*1.9/400=7600).
In case (A) every pip costs you $40 (i.e. 1pip*$10) while in case (B) every pip costs you $160. Now if the price drops to 1.8983 in case (A) your free margin drops to $1720 (i.e. you've lost $680). You've lost a substantial amount of money but you are still in the game. In case (B) you lose $2720 (17pips*$160) and your free margin drops below zero ($7600+$2720>$10000). Your broker stops you out and you are out of the game losing over 27% of your account in a single trade and just by a 17 pip movement.
With Money Manegment You Usually Don't Care about Leverage
If you have MM rules in place you usually use position sizing and risk a specific amount of your money. For example you decide to set VAR (Value At Risk) to be 5% of your account size (i.e. you risk $500 of your account balance per trade).
With this system in place if your stop loss is set to be 50 pips from your open price you won't trade more than 1 lot. Because with 1 standard lot each pip will cost you $10 and 50 pips is $500 or 5% of your account.
Now whether you have a leverage of 400:1 or 100:1 you only buy 1 lot. However, with higher leverage you consume less margin (i.e. $425.00 vs $1900.00 if the price of GBPUSD is 1.9000). But as far as you are far away from margin call it doesn't really matter, does it?
Higher Leverage Helps You Trade More Currency Pairs (or have more Open Trades)
One of the approaches that you can reduce your chances of loss is to trade several pairs at the same time. In this case a higher leverage is really helpful. For example if you trade 1 standard lot for each pair with 100:1 and $10000 account balance you might not be able to trade more than 3 or 4 trades but with 400:1 trading 4 or even more pairs at the same time is not an issue.
The same situation is true if you decide to have several trades open at the same time.
Conclusion
The bottom line is that higher leverage can be used as a winning tool in the hand of a professional trader but be a killer if used by a novice trader.
Good Luck,
AlIgnored
DislikedHi all.
I didn't really want to get into this one..., but...
I just have one burning question:
Why are so many very successful traders/investors not as highly leveraged?
I've personally never wanted to go that high, hell, 100:1 scares me :
Even though my account comes with that leverage by default [as many do], I still trade "old-school" and treat my positions as if I only had 50:1 at the most...
Just an observation, and pondering the question after reading this thread.
Many stupidly rich traders/investors have managed with much less, and seem to be doing just fine.
Show me one, that is that highly leveraged, and still around after 4/5 years [even 3], and I will gladly eat my words [and hat, or whatever]Ignored
DislikedWhew! Sure are a lot of you good folks that are lacking proper knowledge of the relationships between margin, risk, broker leverage and true leverage.
True leverage? I skimmed all the posts in this thread and did not see a single mention of it (though it could be inferred from a few posts I saw). If you don't know, and want to learn, take a look at the money management posts in the thread called "Information for Beginners". It is a sticky thread in the Beginners forum. The MM starts at post 13. Forgive the mess in there, but a lot of stuff from different threads got jammed together into one thread. I haven't had a chance to clean it up yet.
Happy hunting!
DialIgnored
Disliked
zek132 - You state that for very high leverage, a person's account will easily be wiped out yet you also said that brokers don't want to go bust bec of it. Broker and their clients going bust? That's contradictory!
Ignored
Dislikedhttp://www.forexfactory.com/showthread.php?t=10780
Posted Nov 30, 2006
by aparsai
I try to wrap up what everyone else said with a few examples:
In these examples suppose your base currency is USD and and your current balance is $10,000. Also you get a margin call if your free margin drops below $500.
Higher Leverage and Money Mangement
Higer leverage without money management is a real killer. If you decide to trade GBPUSD long and the current price is 1.9000:
(A) With 100:1 you may purchase 4 standard lots and consume $7600 of your margin (4*100000*1.9/100=7600).
(B) With 400:1 you can purchase 16 lots and consume the same amount of your margin (16*100000*1.9/400=7600).
In case (A) every pip costs you $40 (i.e. 1pip*$10) while in case (B) every pip costs you $160. Now if the price drops to 1.8983 in case (A) your free margin drops to $1720 (i.e. you've lost $680). You've lost a substantial amount of money but you are still in the game. In case (B) you lose $2720 (17pips*$160) and your free margin drops below zero ($7600+$2720>$10000). Your broker stops you out and you are out of the game losing over 27% of your account in a single trade and just by a 17 pip movement.
With Money Manegment You Usually Don't Care about Leverage
If you have MM rules in place you usually use position sizing and risk a specific amount of your money. For example you decide to set VAR (Value At Risk) to be 5% of your account size (i.e. you risk $500 of your account balance per trade).
With this system in place if your stop loss is set to be 50 pips from your open price you won't trade more than 1 lot. Because with 1 standard lot each pip will cost you $10 and 50 pips is $500 or 5% of your account.
Now whether you have a leverage of 400:1 or 100:1 you only buy 1 lot. However, with higher leverage you consume less margin (i.e. $425.00 vs $1900.00 if the price of GBPUSD is 1.9000). But as far as you are far away from margin call it doesn't really matter, does it?
Higher Leverage Helps You Trade More Currency Pairs (or have more Open Trades)
One of the approaches that you can reduce your chances of loss is to trade several pairs at the same time. In this case a higher leverage is really helpful. For example if you trade 1 standard lot for each pair with 100:1 and $10000 account balance you might not be able to trade more than 3 or 4 trades but with 400:1 trading 4 or even more pairs at the same time is not an issue.
The same situation is true if you decide to have several trades open at the same time.
Conclusion
The bottom line is that higher leverage can be used as a winning tool in the hand of a professional trader but be a killer if used by a novice trader.
Good Luck,
AlIgnored
Dislikedjlpi - So you think that athletes choose their own equipments? Racers choose their own cars, motorcycles, etc? So, if someone is good in something, he/she already knows EVERYTHING about all that is available in the market? Haven't you heard of sponsors?
cecmc - So you think if someone ask about 400:1 or 500:1 leverage, he/she is already a loser in forex? Why? Did it happen to you?
zek132 - You state that for very high leverage, a person's account will easily be wiped out yet you also said that brokers don't want to go bust bec of it. Broker and their clients going bust? That's contradictory!
Just because a person ask about something they might not fully understand or experience doesn't mean it's wrong or they are a fool. Can't people just explain why it's not good to use high leverage instead of using sarcasm?
PipBoy may want to use high leverage bec he likes to experiment with it. That doesn't mean he won't succeed.
The Wright bothers were laughed at bec of their dream of making a flying machine. Other dreamers tried but they all failed so they say it's impossible for man to fly. The rest is history.
Thanks Micro-MiniMe. Hope people here emulate you. Just explaining without sarcasm.Ignored
DislikedHello Bravester & PiPBoY,
The 20k was my total account there. I'm moving the funds over to HotspotFX this week.
HotspotFX are a large ECN broker. They have great reviews.
I'm currently converting all my MT4 EAs over to use their Java API.
Their leverage is only 50:1. I guess that's the price you pay for
security.
I wish you all well with your trading.
CoderIgnored
DislikedWhat i ment here, with most ECN brokers it is possible to have a negative balance, unlike bucketshops, which usually state that your account is protected. Hence if somebody with a ECN broker gets 500:1 leverage, and uses it to the fullest(trading GBP/JPY for bigger impact), and then say... GBP/JPY whips around by 200 pips withing a few minutes ( as has happened not so long ago) his/her account would be majorly -ve. If this is a big account there is a chance he/she/it(corporation) would not be able to pay, this would either
a) give a bad reputation to the broker
b) cause the broker to pay as a legal counterparty
I'm not too sure what would happen in this situation, but i'm pretty sure most brokers would like to avoid it. At least that's what my impression from various brokers that i've worked with is.
I did assume though, that when someone is looking for a high leverage, they are looking to actually use it, otherwise why have it if you don't use it?
In either case, PipBoy, you will only get such leverage on only small account. So if you are looking to make some decent money in forex, long term, forget about this idea, as you won't get high leverage for large capital. 1:100 is more then enough anyway, or so it seems to me...
Best regareds,
VladIgnored
DislikedBecause on casino you cannot control your risk.
On Forex you can control it.
You can risk your maximum loss of -200 for a win of 3800.
In casino it is 50/50
Thats a big different dude!Ignored
DislikedWell said bro.
I like your trading style. Very good indeed. In my opinium 1:400 or 1:10 or 1:1000 is the same. If you have a STRONG Risk Management you can use that leverage easily. I dont understand why wannabe pro traders laughing at you when you asked them for an advise. Especially Mr. Trend, that guy is a joke.
I have also tried to look for a broker with 1:400 1,5 years ago.
Well, Pipboy i must dissapoint you, there are NO brokers that offer you 1:400. Why? Because brokers that offers 1:200 or higher are bucket shop! Or they are a big fraud like Northern Finance. They will stop Hunt You. Trust me. Metatraders brokers are a big joke too.
You should look for an ECN broker that offer high leverage. If you dont know what an ECN is do a Google search. ECN model are the best way to trade in FOREX.
I am with MBT/EFX Group at this moment. They are a great broker and offer 1:100 to you. That is the highest leverage soo far for an ECN Broker.
Interactieve Brokers are much BIGGER but they offer 1:50 which are too low for me so that is why I choose MBT/EFX group.
Ignored
DislikedI mean,
In casino you cannot control the risk.
In FOREX you can control them.Ignored